Platts announces changes to Midwest CBOB gasoline assessments ahead of 2025 RVP waiver removal

Platts, part of S&P Global Commodity Insights, will make a number of changes to its Midwest CBOB gasoline assessments with effect from Feb. 3, 2025, ahead of the anticipated removal of an RVP waiver in eight Midwest states from 2025.

These changes follow an extensive consultation period which commenced in September and concluded with a proposal in a subscriber note published Nov. 26 that can be found here. During this time, Platts assessed the impact of the waiver removal and whether the low RVP gasoline, expected to be supplied, should be reflected in existing or new assessments. Platts subsequently published a clarification note and extended the feedback period to Dec. 20, available here.

The waiver removal will lower the RVP limit for conventional gasoline in eight states – Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota and Wisconsin -- to 9 psi during the summer months, compared with the current 10, after blending with up to 10% ethanol.

The removal of the 1-psi waiver is expected to alter the supply of CBOB in the region, impacting the Group 3 and Chicago markets.

Group 3

Platts' current Group 3 assessments reflect product moving on the Oneok pipeline system on an FOB Tulsa, Oklahoma, basis.

Platts understands that the Group 3 market is expected to see greater demand for the lower RVP CBOB in the northern part of the Oneok pipeline system, while the southern part of the system remains at 9 RVP, same as summer 2024 and previous years.

Platts will therefore continue to reflect the 9 RVP market in the summer months for the current assessments for sub-octane and Premium unleaded 91 gasoline in Group 3. At the same time, Platts will launch new assessments for the same two grades reflecting the new low RVP quality in the summer with effect from Feb. 3, 2025. The new assessments will be published on both an outright basis and as differentials to NYMEX RBOB futures and will be published year-round.

Chicago

Platts' generic Chicago CBOB assessment currently reflects the lowest value between the Badger, West Shore and Wolverine pipelines.

The removal of the waiver is expected to mean that the Badger and West Shore pipelines will only handle low RVP CBOB. Meanwhile, the Wolverine pipeline is expected to ship the higher 9 RVP product from next summer.

Platts will therefore remove Wolverine from the basket underpinning the generic Chicago assessment with effect from Feb. 3, 2025. The assessment will reflect the lower RVP CBOB being shipped on West Shore and Badger next summer.

At the same time, feedback suggested Platts to start reflecting low RVP grade of CBOB at the Buckeye Complex storage hub (BCX) for its generic Chicago CBOB assessment in place of Wolverine.

Recent feedback suggested that BCX will continue servicing the higher 9 RVP product in 2025, but there is still uncertainty if the complex will also carry a low RVP grade of CBOB.

Platts will therefore launch an additional standalone assessment for the BCX complex to reflect the lowest fungible RVP product, subject to confirmation of the low RVP product's distribution by Buckeye. Once launched, the new low RVP BCX assessment will be included in the generic Chicago CBOB assessment in place of Wolverine.

Further information on the launch of the new low RVP BCX assessment and its inclusion in the generic Chicago CBOB assessment will be announced in another subscriber note, upon confirmation of the low RVP product's distribution by Buckeye.

Platts' existing stand-alone assessments for CBOB on the Wolverine pipeline and at the BCX complex will continue to be published and will remain unchanged, reflecting higher 9 RVP CBOB in the summer.

These changes are based on feedback gathered during the consultation period and in response to the specific proposals.

The new assessments and existing assessments impacted by the proposed changes are as follows:

Group 3

Chicago

Changes to the composition of the basket underpinning the generic Chicago basket only relate to CBOB and Premium CBOB (Unleaded 91) assessments detailed above, and not to any Platts Chicago assessments of other refined products.

Platts will publish an RVP calendar in January for these assessments detailing the timing of the expected RVP changes throughout 2025. The calendar will be subject to change in accordance with updates from Oneok, Buckeye, West Shore and Wolverine.

The changes are based on current market expectations relating to the removal of the waiver and the impact on resulting pipelines along with other infrastructure. Should these circumstances change, Platts may update its methodology as necessary through the publication of additional subscriber notes.

Please send any additional feedback or comments to americas_products@spglobal.com and pricegroup@spglobal.com .

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.

Platts will consider all comments received and will make comments not marked as confidential available upon request.